Chongqing- On July 8th 2020, the Information Office of Chongqing Municipal People's Government held a press conference to present the current state of high quality development in consumer products, in light of the corresponding action plan set in motion back in June this year, and leading through 2022.
High level representatives of the consumer goods industry presented the current situation in the aim to further high quality development in the industry.
High level representatives of four major consumer product enterprises in Chongqing attended the conference to explain the strategies they are implementing to achieve the targets stated in the action plan.
Vice director of the Chongqing Municipal Economic Information Committee Mr. Wang Renlin introduced the latest performance indicators, and strategies for achieving the goal of high quality development in consumer products.
From the perspective of development experience at home and abroad, the consumer goods industry has always been a stable and rich people’s industry. The average growth rate of the main business income of consumer goods industrial enterprises in the city in the past three years has reached 9.1%.
In 2019, consumer goods enterprises achieved an output value of 321.3 billion yuan, a year-on-year increase of 6.4%. It has become an important force for the city's industrial economy to grow steadily, adjust its structure, and benefit people's livelihood. The scale of output value in the whole industry accounts for 15% of the city's total, and the industrial added value accounts for 18.7% of the city.
The periodic fluctuation is small and the risk resistance is strong; the employment capacity is large, which has obvious benefits in driving agricultural production, promoting farmers' income, and helping to overcome poverty. Promoting high-quality development in the consumer goods industry is of great significance to the municipal policy of ‘six stabilities’ and ‘six guarantees,’ and the implementation of the strategy of expanding domestic demand.
The Chongqing consumer goods industry has a long history and solid foundations. It has achieved a scale of 100 billion Yuan in the output of food, and tens of billions in paper, textile and clothing, plastics, furniture, glasses, appliances, and watches etc. At the same time, the consumer goods industry in our city has also achieved positive results in innovation, big data intelligence, unique industrial bases, and green development.
As of June 2020, the industry recognized 55 municipal enterprise technology centers and 5 municipal industrial design centers 5 , 10 smart factories, 56 digital workshops, 24 green factories, and 2 national new industrialized industrial demonstration bases.
The action plan has been designed to achieve a total output value of 450 billion yuan in consumer goods by the year 2022 Yuan; nurture five 10 billion Yuan scale enterprises, ten of 5 billion Yuan in scale, ten high-profile market-leading products, 20 consumer product brands of national influence; the construction of two 50 billion Yuan scale national demonstrations bases, and five 10 billion Yuan scale municipal specialty production bases.
The strategy focuses on three key directions and the implementation of the following seven main tasks:
Product innovation is a core principle in the effort to promote high quality development in consumer products.
(1) Enhance and strengthen traditional advantageous industries. Focusing on becoming stronger, bigger, and more refined, we should focus on improving the quality of the tobacco manufacturing industry, promoting the revitalization of Chongqing wine, and accelerating the development of grain and oil condiments and food manufacturing.
(2) Cultivate and develop the emerging consumer goods industry aiming at new market demand. Nurture and develop emerging consumer products around features, health, intelligence, fashion and refinement.
(3) Promote industrial integration and development. Promote the integrated development of the consumer goods and tourism industries, and closely connect with the trade and circulation industries.
(1) Give free reign to innovation. Focus on creative design, technological research and development. Improve the standard of industrial design, and enhance new product development capabilities. Cooperation is on-going with districts and counties for the establishment of the Chongqing Consumer Goods Industry Innovation Research Institute, which will provide intellectual support for industry development.
(2) Strengthen standard guidance. Improve the ability to adapt to and lead the standard, and strengthen product quality and safety assurance by building a product quality certification and inspection and testing service platform
(3) Create leading products for top enterprises with strong regional characteristics, high quality assurance, and wide brand influence.
(4) Promote the development of industry clusters through the construction of industrial bases with inter-regional coordination and support.
(5) Carry out special actions for brand cultivation, including the integration of resources belonging to all parties, a comprehensive service system, brand promotion activities, and shaping a new image of brand consumer goods in Chongqing.
(6) Improve the level of intelligent and green development. Promote industry technological transformation and intelligent transformation. Build an industrial Internet cloud platform.
(7) Optimize and broaden market channels. Focus on the coordinated development of both international and domestic markets, online and offline. Help enterprises expand market channels through production and sales matching, themed consumer activities, professional exhibitions, and e-commerce marketing.
Jiangxiaobai is a key representative in the Chongqing consumer goods and food industries. Founded in 2012, it is a comprehensive rice wine producer with a complete industrial chain. CEO of Chongqing Jiangxiaobai Wine Co. Ltd Mr. Jiang Nan has introduced its company.
Municipal government leaders once proposed they should further enrich varieties, improve quality, create new brands, and expand markets in the unswerving promotion of high-quality development for consumers.
To this end, the industry proposes to enhance the brand, perform cultural drives, improve the brewing process, and build a superior rice wine production area in the southwest, with reliance on fruit forest resources to develop flavored fruit wine and high-end beers.
According to Mrs. Peng Xiangrong, PR supervisor of Chongqing Yachuang Clothing, founded in 1997, Yachuang Group is an apparel enterprise with a whole industrial chain specializing in fashion culture research, brand operation, and manufacturing. There are 3 subsidiaries, of which Yawei Ltd is mainly responsible for product development and brand management; Xinwang Ltd mainly handles marketing, while Jiazi Ltd assumes the role of manufacturing. The group has nearly 1,000 employees, with annual sales numbering more than 200,000 garments.
Strategies based on the Municipal Action Plan;
(1) Focus on people R&D in brand design is the soul of the industry. The group has always attached great importance to core competitiveness. The group now has nearly 50 R&D teams, including renowned French designers who worked for brands such as Hermes and Levi’s.
At the same time, cooperation with universities and independent designers is being strengthened. Support will be given for product planning, trend control, and design creativity, including the addition of stories and themes so that products speak for themselves .
(2) Focus on goods Products are the core of the brand, while quality and efficiency provide the core competitiveness. The group focuses on the reform and innovation of the production organization model, creating distinctive production lines, and achieving the business strategy of ‘small order fast return’ in best-selling categories to reduce inventory and sales risks.
According to the sales performance of the product in question, production can be swiftly reorganized to supplement market demand, so as to achieve the mode of maximizing sales and minimizing inventory. In 2019, sales of new products increased by 5 percentage points, which also greatly reduced the occupation of liquidity through inventory.
(3) Focus on stores Store image is the externalized display of the brand's personality and basis for consumer impressions. In 2019, we participated in the Cannes Fashion Show in France as the first women's brand in the west. At the same time, we have cooperated with well-known domestic space design agencies to create a brand-new shopping experience space.
In terms of Mr. Wang Xiangdong, Vice general manager of Chongqing Langso, established in 2000, Chongqing Langsa Furniture Group is a private enterprise integrating R&D, design, manufacturing and sales of panel-wood, solid wood and soft furniture. Currently, Lanza is treading its own high-quality development path through transformation, upgrades, smart environmental protection, and brand enhancement. These are the main aspects;
(1) Upgrade the industrial development format and enrich product structure. Our new factory already has four functions: furniture manufacturing, home cultural experience, rooftop agricultural tourism, and furniture direct sales. In other words, the factory is built as an experience-based factory where visitors can see the production of furniture, understand the history of furniture evolution, and to experience the cultural connotations of home furnishing.
(2) Deepen the integration of technologies and promote intelligent upgrades. Informatization and intelligence are the major development trends in furniture manufacturing. Our company has established a big data informatization platform to comprehensively guide production and operations. At the same time, the introduction of advanced foreign robotic equipment has changed the nature of flexibility, intelligence and automation.
(3) Optimize product positioning and brand upgrades. Langso products will continue on the road of design, simplicity and fashion to meet the needs of consumers. At the same time, we must continue to improve brand value. This year, we will fully update the VI system, strengthen advertising multimedia promotions, and improve packaging and store image.
(4) Carry out diversified marketing and expand market scale. Traditional storefront sales are gradually shifting to e-commerce platforms. At the same time, cross-border cooperation with real estate, design, and decoration companies is being strengthened.
Mr. Deng Rong, Director of Chongqing Dencare Corporation, introduced that Dencare is one of the earliest major toothpaste manufacturers in China, dating back to the Chongqing Dala Chemical Factory established in 1939. It implemented mixed ownership reform in 2019, and today, it continues to be a municipal state-owned holding company and time-honored brand.
Close focus is placed on the Chongqing action plan to promote the high-quality development in the consumer products industry, and is following these five strategies;
(1) Implement an innovation-driven development strategy around the oral health industry. Dencare has always adhered to the focused on oral cavity products as the main business activity, and actively promotes the construction of innovative platforms, joint venture cooperation in oral health, and IPO listing to further stimulate the development vitality of enterprise.
(2) Fully promote innovation and product structure upgrade. Dencare will focus on increasing variety, quality, and brand rejuvenation to meet the individual and diversified needs of consumers.
(3) Adhere to the guidance of science and technology, and allow technological research and development to empower products. Dencare will further strengthen the combination of independent innovation capabilities, production, education and research, deepen cooperation with authoritative institutions, and actively promote technology centers and nationally recognized laboratories to develop more innovative, high-quality, and high-value oral care new products.
(4) Speed up industrial Internet and digital upgrades, and create efficient and smart factories. Dencare will use new Internet thinking to accelerate the pace of this transformation, realize the in-depth integration of digitalization in business management, and strive for a new business operation model.
Dencare plans to invest another 150 million yuan to implement the construction of smart manufacturing factories, digital factories and DIY interactive experience factories to create a tourism-oriented, popular science education-type garden factory.
(5) Adhere to the strategy of recruiting talented professionals and build a high-quality business team. Dencare management and technical personnel accounted for 60% of industry related graduates, while doctoral students accounted for 48%.
Dencare attracts and retains talent by establishing a market-based remuneration system, implementing core employee shareholding plans, implementing the Amoeba business model, and piloting business partnerships to fully mobilize and motivate employees.
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